Commericial banks help in economic development mainly by
Acting as trustees and executors of wills
Acting as intermediaries between government and borowers
Serving as custodians of valuables
Giving financial advice to the government
Correct answer is B
Commercial banks collect deposits from savers and lend these deposits to borrowers. This process of intermediation allows savers to earn interest on their deposits and borrowers to obtain the funds they need to invest in businesses and other productive activities.
Commercial banks also provide other services that can help economic development, such as:
Making payments: Commercial banks facilitate payments by providing checking accounts and other payment services. This makes it easier for businesses to conduct transactions and for consumers to purchase goods and services.
Providing credit: Commercial banks provide loans to businesses and consumers. This helps businesses to expand and create jobs, and it helps consumers to purchase homes and other goods and services.
Investing in the community: Commercial banks invest in the community by making loans to small businesses, providing financial education, and supporting local charities. This helps to create jobs and improve the quality of life in the community.
Is inefficient in the production of both commodities X and Y
Is more efficient than country N in producing both commodities X and Y
Can produce only commodity Y cheaper than country N
And country N are efficient in the production of both goods
Correct answer is B
Country M enjoys absolute advantage over country N in the production of commodities X and Y if country M is more efficient than country N in producing both commodities X and Y.
Absolute advantage refers to the ability of a country to produce a good or service using fewer resources than another country. In this case, country M is able to produce both commodities X and Y using fewer resources than country N. This means that country M can produce more of both commodities with the same amount of resources, or it can produce the same amount of both commodities with fewer resources.
A small scale firm located within an industrial estate will enjoy
Government protection and funding
Technological economies of scale
Financial economies of scale
External economies of scale
Correct answer is D
A small scale firm located within an industrial estate will enjoy external economies of scale. This is because the firm will be able to benefit from the shared infrastructure and services that are available in the industrial estate.
External economies of scale are cost savings that are enjoyed by firms as a result of the growth of the industry as a whole. These savings can be realized through the sharing of infrastructure, such as roads, water, and electricity, and the pooling of resources, such as research and development.
In addition, the firm may also be able to benefit from the clustering of firms in the industrial estate. This clustering can lead to increased competition, which can drive down prices and improve the quality of products and services.
Horizontal
Upward sloping
Vertical
Downward sloping
Correct answer is C
The total fixed cost curve is vertical. This is because the total fixed cost does not change with the level of output.
Fixed costs are costs that do not vary with the level of output. These costs are incurred regardless of how much output is produced. Examples of fixed costs include rent, insurance, and depreciation.
The total fixed cost curve is a graph that shows the relationship between total fixed cost and the level of output. The curve is vertical because the total fixed cost does not change with the level of output.
Resources are pooled for the mutual benefit of its members mainly in a
Cooperative society
Joint stock company
Private company
Partnership
Correct answer is A
A cooperative society is a type of business organization that is owned and controlled by its members. The members of a cooperative society pool their resources together in order to provide goods and services to each other at a fair price.
In a cooperative society, the members are the ones who benefit from the pooled resources. The profits of the cooperative society are distributed to the members, and the members have a say in how the cooperative society is run.